Factors Influencing Knowledge Management Practices in Financial Institutions a Survey of Saccos in Meru County, Kenya

Abstract

In the fast changing business environment, knowledge has become the mainstay of every organization in creating and sustaining competitive differentiation. This study investigates factors influencing knowledge management practices in financial institutions in Meru County. Business enterprises operate in environments characterized by increased need for knowledge to create and sustain competitive advantages. Organizations therefore, need to be cognizant of the factors that influence the success of knowledge management initiatives. There is increasing need for knowledge management as a strategy for creating and sustaining competitiveness. In order for financial institutions such as Sacco’s to succeed in highly dynamic business environment, it is critical that they embrace knowledge management practices in their operations. This study used a descriptive survey design. The target population was 44 human resource managers of the 44 SACCOs in Meru County which have been in existence for over two years in the year 2014. The study used census study methodology. The study used both primary and secondary data. Descriptive statistics was used to analyze the data. Logistic regression was used to link the relationship between independent variables and dependent variable and to test the hypothesis.Descriptive data was presented in form of frequency tables, pie charts and percentages. The study concluded that knowledge management practices were significantly associated with successful performance. These findings provide some meaningful implications for practitioners and researchers that are interesting in knowledge management system design. The researcher recommends that: Management should understand the importance of knowledge management as a strategic asset which gives organizations sustainable competitive advantage.